TOKYO, Jan. 11 (UPI) -- Japanese Finance Minister Yoshihiko Noda said Japan would buy eurozone bonds "to raise trust" in the struggling euro.
Japan committed $100 billion to the International Monetary Fund to help emerging markets in 2008, The Financial Times reported Tuesday. The finance minister's newest pledge is Japan's first major commitment to help Europe's economy since then, the news agency said.
In remarks to reporters, Noda said, "To raise trust (in Europe) is appropriate for Japan as a leading nation to contribute by purchasing a percentage (of the bonds)."
With the euro falling to four-month lows against the dollar recently, Japan is pledging buy more than 20 percent of the bonds in the European Financial Stability Facility, which are targeted to assist Ireland, the last European country to seek an international bailout.
"It at least represents a positive token gesture for the eurozone and helps the mood music surrounding the issue," of European government debt, said Chris Scicluna, head of economics at Daiwa Capital Markets Europe.
